Win 7 Home Antivirus Gone?

Okay, today while I was out driving around I got hit with Windows 7 Home Protection 2012 (Between Noon and 4). I had some Firefox tabs open, iTunes, ect. Then when I saw that I had it, I closed the program (I looked for anything suspicious in my task manager but I didn't see anything suspicious). I booted up Vipre and it found FakeAlert.Trojan, but when I tried to clean the file there was an error and I was unable to delete/quarantine it. So I attempted a system restore, only to find that I couldn't run anything. I would get a popup (from Win7 Antivirus) saying that any .exe I tried to open was infected, and upon clicking the "Continue Unprotected" the program wouldn't open. After a few minutes of trying to do a work around (Run as admin, open with, and so on) with different files I forced a power off and booted in safe mode. From safe mode I ran a system restore but it was unfortunately unsuccessful and I was again greeted by Win7 AV 2012. This time however I couldn't open either of my legitimate anti-viruses (I use Vipre and Malwarebytes) so I forced a power off again. When my computer rebooted I quickly opened Malwarebytes and ran a scan. It found two copies of qvy.exe and I hit the clean button. Malwarebytes reported that they had been successfully removed but them my system rebooted without a prompt (About 6). Since that reboot there have been no obvious signs of the virus. I, however, cannot run .exe files without a "Windows does not recognize that file, please select the program to open with" window opening. So I opened my laptop and started scrounging for information. Then I realized both Steam and Vipre were running on my computer. So I right clicked my Vipre icon and clicked "Scan with Vipre" and sure enough Vipre opened. So I did the same with Firefox, when I was prompted to pen it with something I chose firefox and sure enough firefox opened. I then opened iTunes with itself just to see if it worked all around, and it did. So here I am typing this from the infected computer. What the heck is going on? (Also thanks if you read through all of this.)

 

Update (I hope this doesn't violate the bump policy):
I tried fixing the registry twice (both times it said I did it right but it didn't fix anything). Then decided to try a system restore (as I said before I can open almost every file with some work around). But as far as I can tell it didn't do anything (still can't "run" .exes files). Still no obvious signs of Win 7 AV.

 

I downloaded and installed but I still can't run .exe files without going through my work around. Also ran Vipre and Malwarebytes over night, but they turned up nothing. And thanks for the warm welcome :wave .